Earlier this year, General Motors announced its plans to integrate AT&T 4G LTE connectivity into its vehicles. The technology, which will become available in vehicles starting next year, will allow a plethora of connectivity possibilities. And we are just now beginning to learn about the business side of the deal between The General and Ma Bell.
During GM’s Q1 2013 earnings call, General Motors CEO Dan Akerson said that the automaker is in negotiations with AT&T to receive about $20 for every customer who signs up for 4G service — a deal that sounds very similar to the partnership General Motors has in place with SiriusXM until later this year.
The reasoning behind the plan is simple: AT&T can gain subscribers from owners of the 4G-equipped GM vehicles, turning cars into devices on AT&T’s network. And because of that, the telecom will share some of the revenue with The General. In addition, AT&T might also be able to display ads on the infotainment screens of GM’s vehicles — resulting in two forms of revenue for Big Blue: 4G service subscriptions, and a form of in-car advertising.
After the call, General Motors communications issued a statement that pretty much said that Akerson’s remarks were premature: “During the call, some specifics were offered up regarding our partnership with AT&T and the new business model opportunities it may create…. These comments did not disclose the entirety of both sides of our agreement with AT&T and we are not prepared to discuss those particulars at this time.”
The GM Authority Take
So, Akerson got a bit ahead of himself by discussing deals that may not be set in stone just yet. If only he did that about upcoming models…
Nevertheless, we’re some somewhat averse to being bombarded by ads in our cars, but are intrigued by the tertiary benefits of such a program. For instance, we can imagine a scenario where the ads subsidize the cost of the monthly service subscription.
Would you be willing to get a few ads in your car to have a smaller monthly service bill from AT&T? Sound off in the comments.
Comments
So they Leave Verizon who Always has the #1 Customer Service to AT&T Who Always is at the Bottom of the Customer Service List……Don’t get that, GM is Priding themselves on the Customer but Give them a Customer Service Nightmare in their Cars…..I Really Hope they Re-Think This Big Time!!!! 🙁 🙁 🙁
Yes ATT is at bottom of service list.I have stuck them and have found that they have improved. I really like this proposed plan.I do hope the cost will stay down.It can be a great way for ATT to be able to give their customers a great addition to service.
Tony c’mon man. Customer service surveys/scores are a joke… just like vehicle reliability and IQS studies.
No way do I want ads in my car. That would be a very quick way to get me to NOT subscribe to a service.
Yes, I know I get ads on the radio and even on satellite radio, but I don’t need flashy, glitzy things distracting me when I’m driving. And, even if the ads only appear when the car is stopped, it had nothing to do with the function of the car and had no place on that screen.
Honestly, as a society, we are too accepting of the things companies try to do to market to us more.
If it is anything like the crap service i get with AT&T uverse, NO THANKS!!!
“Would you be willing to get a few ads in your car to have a smaller monthly service bill from AT&T?”
Apart from having no subscription with anything offered by AT&T, just hearing about the idea of in-car ads running at all is deal-breaker for me.
Pretty much every ad I see is poorly rendered anyway, the last thing I need is a misdirected ad pitched at me in my car from a marketing company with a woefully broken consumer targeted advertising system because they think my consumer profile is that of a 58yo woman.
The same irritation happens on YT (cannot hit the skip button or refresh fast enough), and I wouldn’t want it in my car.
Here in the midsouth I have had AT&T service since 2005 and I really don’t have any problems with them at all, not that it is perfect but I don’t have any complaints. The customer service surveys are as reliabe as consumer reports, so take it how you want. I was thinking since Dan Akerson use to be CEO of AT&T that might could have pulled ties closer together..
@Travis Slight correction — it was Whitacre (Akerson’s predecessor) who was CEO of AT&T. I had AT&T for three years with my iPhone and personally couldn’t have asked for better service (actual cell service and customer service).
One thing to keep in mind here is that with the next-gen 4G LTE service will be an all-new ground-up effort employed by all carriers in the U.S. (and mostly globally as well). That was in contrast to the different wireless technologies used by the four U.S. carriers for 3G. That is to say that the playing field will be quite level with 4G.
I’ve had AT&T wireless service for 13 years, I’ve never had to use customer service. It just works. The people at the AT&T stores have always been very helpful when I wanted to upgrade phones.
I would love if you could add this as an additional device when you already have AT&T. Would hate to pay double for the cell service I already have. Maybe they could work it so it would run off of your existing cell phone? Or just have a nominal $10 charge to add your car as another device.
Been with AT&T since my first bag phone, no probs, can’t wait till they take over!